Ausmex Mining Group (ASX: AMG) announced that it has intercepted significant high-grade mineralisation at the King Brown Gold-Copper-Cobalt prospect located within the Mt Freda Complex in Queensland.
AMG said that the drilling targeted previous SAM identified EM targets that had correlated with shallow gold mineralization.
Diamond drilling highlights include significant near-surface anomalism at the King Brown project including 18 m @ 2.34% Cu and 2.17 g/t Au, including 6.3 m @ 4.47% Cu and 5.36 g/t Au.
The company reported that Quartz-pyrrhotitechalcopyrite mineral assemblage recovered from Diamond Core drilling can be described as an Iron Sulphide Copper Gold (ISCG) system, bearing similarities to the BHP discovered Eloise Cu-Au project located ~ 20 km to the east of Mt Freda.
The company also announced an update on the Burra drilling.
Mt Freda complex project
The Mt Freda project, located in Cloncurry, Queensland is 80%-owned by Ausmex. Round Oak Minerals Pty Ltd owns the remaining 20% interest in the project and under the joint venture, Ausmex has the option to process its ore from Golden Mile at Round Oak’s processing plant in Cloncurry.
The King Brown Project is located 2 km North West of the Mt Freda gold-copper mine and within Ausmex’s Mt Freda Complex, a western extension to the Golden Mile system.
Ausmex reported that the King Brown Project has an exploration target that ranged between 2,047,000 and 2,925,000 tons grading 1.5% to 2.5% g/t Au with a cut-off of 0.5% g/t Au.
Ground SAM survey
In December 2017 the project was subject to a Ground SAM survey which isolated several conductivity (MMC) and electromagnetic (EM) anomalies throughout the Mt Freda Complex and the King Brown Project.
RAB drill program
Upon completion of geophysical modelling and interpretation, Ausmex had instigated a shallow RAB drilling program which returned drilling intercepts of up to 8m @ 3.5g/t Au and provided the necessary encouragement for Ausmex to commit to diamond drilling.
Diamond core drilling at King Brown
The company had commenced diamond drilling at King Brown. The program was designed to test one EM feature highlighted by the SAM survey along a >2 km trend of surface mineralisation (Au, Cu, and Co), multiple structural intersection and numerous geophysical targets (Magnetics, Conductivity, and Electromagnetics).
High-grade intersections
Ausmex announced significant Diamond Drill hole intersections at King Brown project.
Highlights include 18 m @ 0.89% Cu and 0.06 g/t Au (15 m – 33 m) , incl. 2.7 m @ 3.65% Cu and 0.19 g/t Au (hole KB18DD003), 13 m @ 1.31% Cu and 1.6 g/t Au (1 m – 14 m) incl. 9.4 m @ 1.66% Cu and 2.04 g/t Au with 1 m @ 2.73% Cu and 17.55 g/t Au. (hole KB18DD004), and 18 m @ 2.34% Cu and 2.17 g/t Au, (2 m – 20 m) incl. 6.3 m @ 4.47% Cu and 5.36 g/t Au with 1.3 m @ 13.3 g/t Au. (hole KB18DD005).
The company reported that the recent 2019 King Brown Project Diamond core drilling results highlight the potential for the Mt Freda Complex to host significant mineralisation.
2020 exploration to be funded by gold production
The Company is currently focused on fast tracking gold production from the Mt Freda granted mining lease in 2020, with first gold pour scheduled for September 2020. The Company is also progressing the current Mining Lease Application ML100201 over the Golden Mile.
Following the scheduled first gold pour from Mt Freda in September 2020, the Company said that it plans to invest gold production cashflow into additional exploration within both the Burra and Cloncurry tenements, where the focus will be on upgrading the current significant Exploration target to JORC Resources.
The company said that the King Brown project will be included within this late 2020 gold production funded exploration program.
Burra tenement drilling update
The company reported that experienced Drilling Contractor Bullion Drilling has been engaged to commence drilling AMT conductive targets by the first week of December 2019
Next steps
The company reported that further work includes additional mapping, costeans, geophysical surveys, RC and Core drilling.
